The Goldman Sachs Conspiracy

henry paulson conspiracyMuch of the current rally from the past couple of days had largely to due with the very strong anticipated earnings that Goldman was to announce. When they did announce earnings on Tuesday, the earnings lived up to the hype. However, coupled with these strong earnings are a lot of outside chatter and accusations of the financial giant about how they've been able to manage so well the past year. I mean not only have they seemed to be in the exact right place at the right time, but they've also managed to see the death of their three largest competitors: Lehman, Merrill, and Bear Stearns.

Not only that, but you cannot help but wonder what motives Ex-Secretary of Treasury Henry Paulson had, whom had previously sat as the Chairman and CEO of Goldman Sachs prior to his Secretary position and no doubt has a large amount of wealth invested in the company, as retired executives tend to have. So is it any wonder how the other were left to fail, while Goldman has been getting stronger?

I don't like to be a conspirator, but I have to admit, there are a lot of unanswered questions about the recent workings of GS. What stands out to me most, is their recent $12.9 billion payment received from AIG. This, in a sense, was a paycheck signed by tax payers. There is no wonder why GS is crushing earnings with payments like these. Also, when asked which financial institutions were the participants of the "off balance sheet spending" that was being done and of how much they received, The Fed would always respond that they are not required to provide such information and to do so would risk the possibility of a run on the banks. I would not be surprised to see Goldman Sachs to be high up on that list.

The point is I do not hold their so called mighty earnings report with much validity. We would like to assume that all play is fair play, but unfortunately, that is never the case. Goldman has now positioned themselves to make more money in the near future than they've ever made, and have been able to do so with the help of Uncle Sam. I think as time goes on, more questions will arise. So far, questions have been swept under the rug.

If we see markets head up more tomorrow, we risk some massive short covering from the bears. I personally expect to see a selling day respond tomorrow, but it's hard to stop a rally, especially after 3%+ day for the Dow and the highest closing day for the NASDAQ in nine months. The good news is, is that all of this was once again done with reasonably low volume. Like I said earlier, I have a lot of things to talk about on tonight's premium podcast (subscribe here), which should show some very good reasons why being a bear is a good call, still in this market. The only constant the last two months has been my Lending Club investment, which has stayed strong at a 10.5% return. Happy Trading.

3 comments:

  1. denis Says:

    if the cre crash is still coming is there anyway we could see SRS trade at the old highs? 100+????

  2. LicensedToKill Says:

    goldman sachs
    http://www.youtube.com/watch?v=ZoQrYa_NKQQ

  3. Unknown Says:

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